Government announces action against payment card surcharges

Following the Office of Fair Trading’s response to a super-complaint by the consumer watchdog “Which?” in relation to payment surcharges in the transport industry, HM Treasury and the Department for Business, Innovation and Skills has announced that the Government will take action against excessive card surcharges that are misleading and stop consumers getting good deals. Excessive surcharges will be banned on all forms of payment across all retails sectors. However, businesses will still be able to add a small charge to cover their actual costs for the consumer using a particular form of payment.

The Government’s actions are intended to take effect later this year, and will implement the Consumer Rights Directive, which was approved by the European Union in October last year.